Shares dropped more than 4% amid concerns that Loeb’s move could ignite a bigger exodus of investors out of the stock, which has staged a big comeback. The stock has rallied more than 70% over the past 12 months amid optimism that CEO Marissa Mayer could turn around the struggling company.

With Loeb cashing in on his Yahooe, the worry now is that he either isn’t optimistic about Yahoo’s turnaround plan, or he doesn’t see much more potential for the stock at current levels, or both.

“When you have a high profile investor getting out, investors might have a little bit of a concern about how much more is left in the tank for the stock from these levels,” Channing Smith, a portfolio manager at Capital Advisors in Tulsa, Okla., which has about $1.1 billion in assets under management, said in a chat with MoneyBeat.